Bush budget seeks more money for SEC, GSE regulator.

• Position: National

President Bush has allocated substantial increases in federal funding to the SEC and GSE regulators, as a sign of his commitment to combating corporate fraud and tightening the reins on government sponsored enterprises (GSEs). In his budget, President Bush proposes Congress increase SEC funding by 13 percent and allocates 25 percent more for regulation of GSEs.

The increase in SEC allocations includes $18.7 million for new staff to continue work on numerous cases involving corporate and mutual-fund misconduct. Sarbanes-Oxley legislation gave the SEC greatly expanded powers and almost doubled its budget. However, the Commission has struggled to hire enough professionals to handle the increased caseload. The SEC has had an especially difficult time hiring accountants who can often earn more in the private sector. The agency hired less than 700 new professionals last year--short of its goal of 842. The latest...